Bitcoin Falls Below $62k, Time to Buy or More Pain to Come?

  • Crypto markets are predominantly in the red, with Bitcoin dropping below USD $62k, marking a 15% loss over the past week.
  • Despite downturns, seasoned investors see dips as opportunities to buy at lower prices, anticipating gains with market rebounds and upcoming Bitcoin halving.
  • Positive shifts in market sentiment and expectations for the FOMC meeting suggest potential for Bitcoin and altcoins’ ascent, signalling a promising quarter ahead.

Present times are not for the faint of heart as the crypto markets are almost exclusively in the red. Bitcoin has fallen under the USD $62k (AUD $94.8k) mark early Wednesday and has now lost 15% in the past week.

Bitcoin (BTC), weekly graph, source: CoinMarketCap

So naturally the question is: up or down, Bitcoin?

Related: Solana Network Activity Surges, Eclipsing Ethereum Amid Memecoin Craze

When Bitcoin’s value takes a downturn, it’s easy to feel disheartened, but many seasoned investors view these moments not as setbacks but as golden opportunities.


Beware Dip Buying Opportunities

The inherent volatility of Bitcoin and the broader cryptocurrency market means that price swings are not just expected but can be advantageous. During a dip, Bitcoin becomes more accessible, allowing investors to buy in at a lower price point, potentially leading to significant gains when the market rebounds.

While 20-30% corrections are not unusual for crypto, it is reasonable to expect more volatility as we make our way towards the Bitcoin halving. Find out more about the halving in our guide here.

In that sense, analyst RektCapital reminds us that we are still early in the cycle and need to be prepared for anything—be it the halving or changes in the broader economy.

Source: RektCapital

Larger Economic Environment

In Australia, the RBA has announced its decision to keep interest rates on hold; however, Reserve Bank Governor Michele Bullock stated that the war against inflation is not over yet. Meanwhile, in the US, the Federal Open Market Committee (FOMC) will release its decision and economic forecast later on.

All major Wall Street firms expect the US Fed to go the same way as the RBA—by hitting pause on rates.

Analyst Michaël van de Poppe said the recent crypto market volatility could be hinting at the potential for continued upward momentum.

With regards to the FOMC meeting he believes this sets the stage for Bitcoin pairs to begin their ascent, marking a pivotal moment for investors eyeing a rebound. Such a rebound, buoyed by favourable outcomes or optimistic interpretations of the FOMC’s decisions, could catalyse a significant rally.

Related: MicroStrategy Buys Additional Bitcoin, Now Holds 1% of Total Supply

Furthermore, he added that this momentum is not just confined to Bitcoin; it hints at a promising quarter for altcoins as well.

With the market’s dynamics poised for change, the forthcoming period could offer lucrative opportunities for those looking to capitalise on the potential upswing in altcoins, underpinning a broader market recovery.

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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